ME News reports that, as of June 1 (UTC+8), industry data shows that an increasing number of retail investors appear to be borrowing money to chase the market’s rapid rise, as South Korea’s KOSPI index continues to set new records. As of last Thursday, the total outstanding personal credit loans from South Korea’s five major banks reached 106.99 trillion Korean won (approximately $70.98 billion)—the highest level since November 2023, when it stood at 107.72 trillion won. This increase was primarily driven by overdraft credit lines, locally known as “negative balance accounts,” which allow customers to borrow up to a pre-approved limit. As of last Thursday, the outstanding balance on these credit instruments reached 41.93 trillion Korean won—reflecting the actual funds withdrawn, not the total credit available to borrowers. (Jin10) (Source: ODAILY)
South Korean retail investors borrow to chase market rally, personal loans reach five-year high
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Summary
South Korean retail investors are borrowing heavily to capitalize on the market rally, pushing personal loans to a five-year high. As of last Thursday, total outstanding credit loans from five major banks reached 106.99 trillion won. Overdraft credit lines, or "negative accounts," hit 41.93 trillion won. As altcoins to watch gain momentum, more investors are using borrowed funds to pursue returns. The surge reflects increasing risk-taking amid bullish market sentiment.
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